Brazil expected to face transmission supply chain bottlenecks

The Brazilian supply chain for major construction projects, particularly transmission lines and substations, is facing difficulties, considering the deadlines for the acquisition and delivery of equipment.

And while skilled labor for operational positions is still available, shortages for more qualified positions are already emerging in certain regions of the country, Robson Campos (pictured), CEO of Sigdo Koppers Ingeniería y Construcción (SKIC) in Brazil, told BNamericas.

"Our view is that in the medium term this could become a bottleneck, and we’re seeking to mitigate it by investing in retaining our employees and training the workforce," he said.

Campos said growing energy investments due to the energy transition represent a main trend in the construction market.

Solar and wind sources have been driving the increase in national installed energy capacity, leading the government to hold large transmission auctions in order to make it feasible for the new plants in the northeast and north of Minas Gerais to reach the main load centers, such as the metropolitan regions of Belo Horizonte, São Paulo and Rio de Janeiro.

Campos emphasized, however, that the environment is challenging for investors to advance new projects due to low energy consumption growth and GDP, coupled with the short-term energy situation with prices on the regulatory floor.

NEW CONTRACT

Last week, SKIC Brasil signed a contract with EDF Renewables for the construction of a transmission line and two substations to serve the Serra das Almas wind farm, on the border of Minas Gerais and Bahia.

The company will be responsible for the EPC (engineering, procurement & construction) services, which involve creating the engineering project, supplying equipment and materials, construction, assembly and commissioning of the transmission line and substations.

The 21km, 500kV line will interconnect the towns of Urandi, in Bahia, where the Serra das Almas collector substation is located, and Espinosa, in Minas Gerais, which will be the connection point between the energy generated by the park and the national grid. 

The substations, both 500kV, are called Serra das Almas I and Serra das Almas II.

The facilities are scheduled to start operating in the second half of 2024. For construction, 750 professionals are expected to be hired.